Health Insurance Market continues to be
loss making portfolio during 2012-2013
Estimates of Indian Health Insurance Market for the year ending March 31, 2013
are now available and according to it this market has touched figure of Rs.15341
Crores.
Overall loss during the year is Rs.1533 crores.
Corporate portfolio and Group Government portfolio (Schemes like RSBY,)
continue to be a loss making portfolio. Retail portfolio continues to be the
segment where insurance companies have been successful in reducing the claims
figures by following rigid norms. May be the decision of PSU’s to go in for
strictness i.e. July 1, 2010 and strengthening of PPN has resulted in good
results.
Indications are that State Governments will not
increase ( as it was happening 2 years back ) their budget for schemes /
subsidy. As on now we are aware of that 4 PSU’s are increasing the premium in
Retail segment by 30% (during 2nd half of 2013). Will it result in
increase in Revenue or it can result in some of the clients not renewing their
policies.
Tuesday, July 9, 2013
Health Insurance Portfolio – An Analysis
Few years back we were very
enthusiastic about the growth of Health Insurance portfolio. This was
especially true during 2007-08, when this portfolio grew from Rs 3210 Cr to Rs
5110 Cr. i.e by 59.20%. Let us look at the growth figures from 2006 to 2013:
% Growth of
Health Insurance over the Years
Year
|
Amount (Rs Crores)
|
% Growth
|
2006-2007
|
3210
|
14.45
|
2007-2008
|
5110
|
59.20
|
2008-2009
|
6634
|
29.82
|
2009-2010
|
8305
|
25.68
|
2010-2011
|
11480
|
38.22
|
2011-2012
|
13184
|
14.84
|
2012-2013
|
15341
|
16.36
|
We have drawn graph showing the % growth YOY and, it shows that figure is fluctuating and is becoming less and less attractive as the years have passed by.
Let us try to make projections for next 6 years.
We have done this with growth rate of 12%, 20%, 30% &
60%.
If we achieve figure of 30% then the portfolio will be Rs 56960 Cr. in 2017-2018.
If we achieve figure of 30% then the portfolio will be Rs 56960 Cr. in 2017-2018.
If some one asks me- What should
be the growth with which you I will be happy?- I will say it should not be 30%
gross but it should be 30% net (as we have to discount for inflation of 10% per
annum in normal costs and 20% per annum in health care costs). Let us not be
satisfied with meager growth of 16%- let us aim for 60%.
It means we should have growth of
60% year over year and then the figure will reach Rs 160862 crores in 2017-18
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